Legislative Update: House Passes Two Bills Modernizing HSA and FSA Rules

On July 25, 2018, the House passed two bills that would modernize health savings account (HSA) and flexible spending account (FSA) rules and expand consumers' ability to cover their health care expenses.

The Restoring Access to Medication and Modernizing Health Savings Accounts Act (H.R. 6199) and the Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act (H.R. 6311), if signed into law, would:

  • Allow individuals with bronze or catastrophic coverage through government-approved health insurance plans to contribute to an HSA.
  • Allow unused FSA funds to roll over to the following year. Current IRS rules limit individuals to carry forward up to $500 from an FSA into the following year.
  • Broaden the qualified medical expense definition to include over-the-counter drugs, menstrual care products, and certain sports and fitness expenses.
  • Increase the contribution limits for HSAs.


If these bills become law, it could significantly increase the popularity and usage of HSAs. Additionally, studies show that the popularity of medical FSAs is declining. If these bills become law, it could reverse that trend.

Both pieces of legislation are expected to go to the Senate for vote later this year. Before they become law, President Donald Trump will need to sign.

Further will continue to monitor events and provide updates.

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